Key Takeaways
What’s driving DeXe’s recent price rally despite last week’s steep losses?
Strong spot accumulation and a 107% surge in market volume have fueled DeXe’s bullish momentum.
What technical signals suggest caution for DeXe’s continued upward movement?
Resistance from Bollinger Bands and a bearish Parabolic SAR signal indicate potential selling pressure ahead.
DeXe’s [DEXE]bullish trend remains dominant in the market, as the asset has risen by 12% in the past 24 hours.
Despite the ongoing rally, investors still question whether it can recover from the significant 56% loss recorded last week.
Spot investors back the rally
DeXe’s recent gains followed two straight days of accumulation, starting from the 31st of October 31 to the time of writing.
Within this period, CoinGlass reports that a total purchase of roughly $350,000 was made, the most significant buy since the 21st of October.
Interestingly, this coincided with a strong surge in market volume, which totaled $17.10 million, representing a 107% increase in the past day.
Source: CoinGlass
A continued rise in both volume and price suggests that the momentum behind the rally remains strong, and the asset is likely to continue upward.
However, this bullish momentum is now being tested as the asset faces a key resistance zone.
Resistance ahead for DeXe
This resistance forms part of the consolidation pattern in which the asset has traded for the past two weeks, starting around the 12th of October.
Typically, a consolidation pattern such as this indicates that investors are accumulating the asset as they prepare for an upside breakout.
A significant close above this level would suggest that bullish sentiment remains strong and that demand could outweigh the supply pressure that previously drove the asset downward.
Source: TradingView
However, DEXE is still down 46% from its September high of $46, implying that if the current momentum continues, the asset could trend back toward that level.
Notably, for early buyers in September, a rally to this level would represent a breakeven point for investors who have held their spot positions or avoided liquidation in derivatives.
The odds against a rally
The odds against a sustained rally have increased, according to several technical indicators on the chart.
First, the Bollinger Bands, which consist of the upper, mid, and lower levels, are showing resistance. The upper band often acts as a barrier that forces prices lower, while the lower band provides a support zone that pushes assets upward.
At press time, DEXE has traded into the upper band, signifying that a decline could be near.
Source: TradingView
Notably, the Parabolic SAR (Stop and Reverse) has also issued another warning signal. The dots have now formed above the price, indicating that selling pressure is building.
If this continues, it implies that DEXE could remain within its consolidation range without making any new highs.
